Washington Dairygrams - March 10, 2011

Washington Dairygrams - March 10, 2011

CHEESE PRICES ROSE 21 days in a row to the high-$1.90s a pound despite a billion pounds in cold storage. Butter slid but still was right at $2 a pound. Nonfat dry milk price strong at around $1.60 a pound. Whey up to 40 cents.

CLASS III FUTURES for March through December averaged nearly $17.25. High was March at $18.75. Low, December, $16.62. Exports driving market.

USDA BUMPS milk price forecasts calling for 2011 All-Milk Price to be in $17.70 to $18.40 range. Class III price forecast to average between $15.80 and $16.50.

DAIRY EXPORTS ACCOUNTED for 12.8 percent of U.S. milk solids production during 2010. That compared to 9.3 percent in 2009 and 11 percent in 2008. Global Dairy Trade auction had 3.9 percent rise in value of dairy products.

FEED COSTS BIG CONCERN as March and May CBOT corn futures near $7 a bushel. Corn year-end carryover stocks as percent of use lowest in 70 years.

CLASS I UTILIZATION in federal orders last year was 35 percent. Class II, Class III, and Class IV marketings were 11, 45, and 9 percent, respectively.

MILK PRODUCTION UP 2.7 percent over a year ago in January for the top 23 states. Cow numbers were up 82,000 (+1 percent) from a year ago and up 14,000 from December. Nation’s dairy herd numbers 9.157 million cows.

CALIFORNIA WAS UP 0.7 percent in milk output. Also up were Wisconsin (+1.6 percent), New York (+4.4), Idaho (+5.8), Pennsylvania (+1), and Texas (+7.7).

DAIRY HEIFER COUNT was 4.56 million on January 1, up 0.7 percent from year ago. Still 49.8 heifers per 100 cows. That ratio was 47.2 five years ago.

FURTHER DROP in pick-up tanker milk samples testing positive for antibiotics . . . 802 out of 3.2 million or 0.025 percent. Down from 0.026 percent in 2009.

BRIEFLY: Cheese in storage up 7 percent from a year ago. Butter stocks down 29 percent from a year ago. Class I mover for March is $18.23, $2.34 higher than February and $3.89 above last March. Licensed dairy farms totaled 53,127 in 2010, down slightly from 2009. (Complete report on page 159.)